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Employee loan deduction

I apologize in advance for the long explanation. In January an employee buys product from us and we use a payroll deduction to take it from her check.  I  set up a "Other current Asset" account for Employee Loan - Jane Doe. Went into that account added a purchase for $100.00 Added a payroll item Employee Loan - Jane Doe, take out $20.00 per week one time limit $100.00. Go to employee payroll information and added Employee loan $20.00, limit $100.00. Works great the first time. In March she buys something else for $120.00, add the amount to her other asset account, set up her payroll item to take out $30 per pay period one time limit of $120.00. When I go to do her paycheck, the $30 is listed under other payroll items on the left hand side but no amount is listed under the employee summary. What am I doing wrong? Thanks in advance for you help.

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Best answer 06-13-2019

Accepted Solutions
Anonymous
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Re: Employee loan deduction

Hi, @lad474.

 

Thank you for providing all the details regarding your employee's loan deduction. Let me help sort this out for you.

 

When adding the limit for the employee's loan, did you add up the $120 amount to the previous limit you've set up? Based on the scenario you've provided, the total employee loan amount is $220. If so, the limit should also be in that amount.

 

QuickBooks will automatically stop deducting once the limit is reached. This may be the reason why there's no amount listed in the Employee Summary. 

 

employee loan.PNG

 

Please let me know on how it goes. Should you need other references for future use, you may refer to this link: Payroll for Desktop.

 

Let me know if you have additional questions about your employee's loan. I'm here to help.

6 Comments
Anonymous
Not applicable

Re: Employee loan deduction

Hi, @lad474.

 

Thank you for providing all the details regarding your employee's loan deduction. Let me help sort this out for you.

 

When adding the limit for the employee's loan, did you add up the $120 amount to the previous limit you've set up? Based on the scenario you've provided, the total employee loan amount is $220. If so, the limit should also be in that amount.

 

QuickBooks will automatically stop deducting once the limit is reached. This may be the reason why there's no amount listed in the Employee Summary. 

 

employee loan.PNG

 

Please let me know on how it goes. Should you need other references for future use, you may refer to this link: Payroll for Desktop.

 

Let me know if you have additional questions about your employee's loan. I'm here to help.

Not applicable

Re: Employee loan deduction

Thank you for quick response. I did add up the totals for 2019. Does that amount start back at zero each year or do I need to add up all the loans since the account was opened?

Not applicable

Re: Employee loan deduction

Thank you for your quick response, I did add all the loans from 2019 and it still did not work so I added all the loans from the beginning of opening the account and that fixed the problem. Thank you for your help. You would think that would start over each year but I guess not.

QuickBooks Team

Re: Employee loan deduction

 

You're all correct, @lad474!

 

I'm happy to know that you're all set and thank you for sharing the steps you've taken. Because it'll also help other users who will come across this thread with the same concern as you have.

 

As always, you can visit our Help Articles page for QuickBooks Desktop if in case you need to learn some "How do I" steps.

 

If there's anything else, please let me know in the comment section down below. I'll be always around ready to help.

Not applicable

Re: Employee loan deduction

Hello,

 

what if my employees wants to have his complete week deduct for this loan, if he gets $1,000.00 per week and he wants to apply $1,000.00, do i have to run this as a payroll week and deduct his taxes and the balance will be apply to his loan?

QuickBooks Team

Re: Employee loan deduction

Hello Mport,

 

Welcome to the Community. I'm here to assist you with any questions you may have with the employee deductions in QuickBooks Desktop.

 

Yes, you can run the payroll week and manually enter the dollar amount you want to deduct below the Rate column. The steps you need to perform will depend on how your employees pay the loan.

 

Here's a sample screenshot on how it looks on a paycheck:

 

1.JPG

 

For the detailed steps on employee advance, such as managing all aspects of this loan, check out this article:

 

Create an employee advance.

 

Please be sure to let me know if there's anything else I can do to help you succeed in making the payroll deductions. The Community has your back.

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